Atlantic Capital Bancshares Inc
Atlantic Capital Bancshares — Q3 2021 Earnings Presentation
30 slides from Atlantic Capital Bancshares's earnings presentation, Oct 27, 2021
Slide 1: Investor Presentation Q3 2021
Proprietary & Confidential INVESTOR PRESENTATION | Q3 2021 atlanticcapitalbank.com NASDAQ TICKER: ACBI
Slide 2: Forward-Looking Statements Disclaimer and Non-GAAP Financial Information
atlanticcapitalbank.com Forward-Looking Statements Disclaimer and Non-GAAP Financial Information This presentation contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended (the “Exchang
Slide 3: Important Additional Information and Participants in the Merger
atlanticcapitalbank.com Important Additional Information and Participants in the Merger SouthState filed a registration statement on Form S-4 with the SEC on September 15, 2021, to register the shares of SouthState common stock that will be issued to Atlantic Capital’s shareholders in connection wit
Slide 4: Q3 2021 Performance Highlights
atlanticcapitalbank.com Q3 2021 Performance Highlights Performance Highlights Credit Update 4 • Reported net income was $13.3 million or $0.65 per diluted share. • Loans held for investment, excluding PPP loans, increased 12% annualized on a linked quarter basis and 14% year over year. • Quarterly a
Slide 5: Financial Highlights: Continuing Operations
atlanticcapitalbank.com Financial Highlights: Continuing Operations (1) Pre-provision net revenue (PPNR) is calculated as the sum of taxable equivalent net interest income and noninterest income less noninterest expense (except provision for credit losses). Dollars in millions. For a reconciliation
Slide 6: Commercial Lending Focus
Owner-occupied CRE 18% atlanticcapitalbank.com Commercial Lending Focus $688 $790 $944 $1,063 $1,134 $1,115 $1,160 $1,204 $622 $605 $653 $686 $681 $693 $745 $752 $176 $203 $184 $192 $61 $62 $80 $73 $65 $71 $70 $77 $144 $192 $219 $106 $48 $1,519 $2,301 Loans from Continuing Operations Loan yield Comm
Slide 7: Strong Core Deposit Franchise
atlanticcapitalbank.com Strong Core Deposit Franchise 28% 32% 33% 33% 34% 36% 39% 40% 56% 56% 61% 61% 58% 53% 49% 49% 1% 1% 1% 1% 5% 9% 9% 8% 15% 3% 3% 3% 3% 11% 5% $3,157 5% Average Deposits from Continuing Operations Dollars in millions. Deposit figures represent average balances. Prior periods ha
Slide 8: Atlanta's Hometown Business Bank
atlanticcapitalbank.com Atlanta’s Hometown Business Bank • C&I Banking – Entrepreneurs and emerging growth companies value experienced commercial bankers attuned to clients’ needs. • Commercial Real Estate – Established relationships with experienced developers of institutional grade properties. • P
Slide 9: Rapidly Growing Fintech & Payments Businesses
atlanticcapitalbank.com Rapidly Growing Fintech & Payments Businesses • Powering fintech and payments companies across the US • Rapidly growing recurring revenue stream • Top 40 ACH Bank in the US(1) • Diversified platform of capabilities • High volume ACH • Fintech partnerships • Card issuance (foc
Slide 10: Financial Update: Q3 2021 Income Summary
atlanticcapitalbank.com Financial Update: Q3 2021 Income Summary Net interest income(1) 25,145 $ 26,035 $ 22,063 $ 14% Provision for credit losses (2,405) (933) 28 -8689% Noninterest income 4,609 3,584 2,504 84% Noninterest expense 15,018 15,197 13,713 10% Income before taxes 17,141 15,355 10,826 58
Slide 11: Balance Sheet Liquidity
atlanticcapitalbank.com Balance Sheet Liquidity 89% 77% 72% 68% 66% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 • Atlantic Capital’s liquidity position remains strong, benefitting from continued strong deposit growth across most lines of business. 11 Dollars in mi
Slide 12: Net Interest Margin
atlanticcapitalbank.com Net Interest Margin NIM by Quarter(1) Net Interest Income by Quarter(1) Dollars in thousands Income and margin from continuing operations (1)Net interest income and net interest margin are taxable equivalent and are non-GAAP financial measures. Taxable equivalent net interest
Slide 13: Noninterest Expense Overview
atlanticcapitalbank.com Noninterest Expense Overview Dollars in thousands (1) Continuing operations Noninterest Expense and Efficiency Ratio by Year(1) Noninterest Expense $50,099 $52,834 $49,991 $53,108 $52,659 76.3% 70.4% 57.9% 58.0% 54.1% 2016 2017 2018 2019 2020 Noninterest Expense and Efficienc
Slide 14: Strong Credit Quality
atlanticcapitalbank.com Strong Credit Quality Non-performing Assets / Total Assets Net Charge-Offs / Total Average Loans (0.01%) 0.05% 0.11% 0.23% 0.02% 0.11% 0.11% 0.05% 2014 2015 2016 2017 2018 2019 2020 YTD 2021 0.12% 0.40% 0.13% 0.14% 0.20% 0.26% 0.13% 0.06% 0.14% 0.10% Highlights Classified Loa
Slide 15: Current Expected Credit Losses (CECL)
atlanticcapitalbank.com Current Expected Credit Losses (CECL) $19,848 $27,734 $35,085 $34,765 $34,946 $30,189 $28,688 $26,304 1.06% 1.43% 1.80% 1.78% 1.70% 1.45% 1.33% 1.18% 1.43% 1.61% 1.59% 1.55% 1.31% 1.27% 1.16% Day 1 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 Allowance for Credit
Slide 16: Paycheck Protection Program (PPP) Update
atlanticcapitalbank.com Paycheck Protection Program (PPP) Update Dollars in thousands • $1.2 million in fees still to be recognized • 252 PPP loans totaling $57 million forgiven during the third quarter 16 Ending Balances and Total Yield Interest and Fee Income $231,834 $192,160 $218,766 $105,684 $4
Slide 17: Appendix
Appendix
Slide 18: Management Biographies
atlanticcapitalbank.com Management Biographies Douglas Williams President and Chief Executive Officer • President and CEO of Atlantic Capital since its inception • Former Managing Director and Head of Wachovia Corporation’s International Corporate Finance Group • Held numerous roles within Wachovia,
Slide 19: Atlanta's Hometown Business Bank
atlanticcapitalbank.com Atlanta’s Hometown Business Bank • Proven underwriting; superior credit quality • Lead with strong risk and compliance • Strong capital • Capitalize on Atlanta market opportunities • Fintech and processing businesses • Core deposit strength Fundamentally Sound Positioned for
Slide 20: Atlanta's Hometown Business Bank: Atlanta metro highlights
atlanticcapitalbank.com Atlanta’s Hometown Business Bank Atlanta metro highlights: •#1 for economic growth potential (among large metro areas) • 16 Fortune 500 headquarters •#1 world’s busiest airport •#4 metro area for largest increase in population (2018-2019) •#2 moving destination • 70% of all U
Slide 21: Investment Portfolio
atlanticcapitalbank.com Investment Portfolio Portfolio Yield Tax-exempt Municipal 30% Taxable Municipal 11% MBS 50% Agency CMO 5% Corporate 3% CDs 1% Sector Allocation at 9/30/2021 1.73% 2.25% 2.48% 2.69% 2.88% 2.32% 2016 2017 2018 2019 2020 Q3 2021 Municipal Bond Ratings 9/30/2021 AAA 44% AA+ 22% A
Slide 22: Summary of Loan Portfolio
atlanticcapitalbank.com Summary of Loan Portfolio Borrowers by State(2) Highlights C&I Concentrations(1) (2) CRE Concentrations by Property Type(1) GA $1,327MM, 68% FL $121MM, 6% TN $108MM, 5% NC $46MM, 2% SC $36MM, 2% Other $324MM, 17% (GA 78% excluding SBA and Franchise) (1) Commercial includes co
Slide 23: Loan Portfolio by Risk Rating
atlanticcapitalbank.com Loan Portfolio by Risk Rating Pass Special Mention Substandard Doubtful Total Pass Special Mention Substandard Doubtful Total Commercial - commercial and industrial 798,718 $ 18,648 $ 21,003 $ 372 $ 838,741 $ 818,155 $ 38,319 $ 16,856 $ - $ 873,330 $ Commercial - commercial r
Slide 24: Balance Sheet
atlanticcapitalbank.com Balance Sheet (in thousands, except share data) Sept. 30, Jun. 30, Dec. 31, Sept. 30, 2021 2021 2020 2020 ASSETS Cash and due from banks $ 25,725 $ 35,530 $ 16,865 $ 22,715 Interest-bearing deposits in banks 811,168 593,195 636,537 91,243 Other short-term investments 140,848
Slide 25: Period End Loans
atlanticcapitalbank.com Period End Loans (dollars in thousands) September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 Loans held for sale Loans held for sale $ 11,814 $ - $ 1,847 $ - $ 859 $ 11,814 $ 10,955 Loans held for sale - discontinued operations - - - - - - - To
Slide 26: Deposits: Period End and Average
atlanticcapitalbank.com Deposits: Period End and Average Period End Deposits (dollars in thousands) September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 Linked Quarter Change Year Over Year Change DDA $ 1,691,616 $ 1,374,018 $ 1,280,524 $ 1,033,765 $ 843,656 $ 317,598
Slide 27: Income Statements
atlanticcapitalbank.com Income Statements (in thousands except share and per share data) September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 Total interest income $ 26,664 $ 27,618 $ 25,410 $ 24,943 $ 24,233 Total interest expense 1,895 1,958 2,065 2,299 2,515 NET IN
Slide 28: Non-GAAP Financial Measures
atlanticcapitalbank.com Non-GAAP Financial Measures (in thousands, except share and per share data) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Taxable equivalent net interest income reconciliation Net interest income - GAAP $ 24,769 $ 25,660 $ 23,345 $ 22,644 $ 21,718 Ta
Slide 29: Non-GAAP Financial Measures
atlanticcapitalbank.com Non-GAAP Financial Measures (in thousands, except share and per share data) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Allowance for credit losses to loans held for investment reconciliation Total loans held for investment $ 2,273,856 $ 2,264,899
Slide 30: Thank You
THANK YOU atlanticcapitalbank.com Member FDIC. Equal Housing Lender. @AtlanticCapital @AtlanticCapitalBank @Atlcapbank
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